A banking expert told the trial of three former directors of Anglo Irish Bank yesterday that it was “normal” for a credit committee to be independent and to meet to discuss loans before loan facility letters were issued.

Tom Reid, who retired from Ulster Bank in 2004, made his remarks after being asked his opinion about then head of lending at the bank, Pat Whelan, signing loan facility letters on July 10th, 11th and 12th, 2008, for loans to the Maple 10 to buy shares in the bank, when credit committee approval was dated July 14th.

Paul O’Higgins SC, for the prosecution, also asked Mr Reid if he had any comment to make on the fact that Mr Whelan, who signed the credit committee approval, had been a party to the loan facility letters.

Mr Reid said in his experience it was normal for a credit committee to meet before facility letters were issued and it was normal people dealing with business at the bank would not have attended credit committee meetings. “Normally it would be independent,” he said.

UnwindingThe Maple 10 businessmen borrowed €45 million each from Anglo to buy 1 per cent of the bank’s shares each as part of a deal to unwind businessman Seán Quinn’s holding in Anglo. And the Quinns were lent €170 million to buy almost 15 per cent of the shares.

The court heard the unwinding deal was carried out in the week of July 14th, 2008.

Seán FitzPatrick (65), Greystones, Co Wicklow; William McAteer (63), Rathgar, Dublin; and Mr Whelan (51), Malahide, Dublin, have been charged with 16 counts of providing unlawful financial assistance to 16 individuals in July 2008 to buy shares in the bank, contrary to section 60 of the Companies Act.

Mr Whelan has also been charged with being privy to the fraudulent alteration of loan facility letters to seven individuals. All three men have pleaded not guilty to the charges.

Mr Reid also told the court he had looked at a number of documents relating to the loans given by the bank in July 2008. He had not sought documents related to the net worth of the Maple 10 because these were not included in the credit committee application, he said.

Mr Reid acknowledged that Ulster Bank was different in some ways to Anglo.

He agreed with Patrick Gageby SC, for Mr McAteer, that Ulster Bank had an established bank branch system with over 200 branches. It was a clearing bank dealing with customers’ credits and debits, while Anglo had only one bank in Dublin and was not a clearing bank. He also agreed he had never seen an Anglo ATM.

However he said the bank was “no different” when it came to lending money. “The business which it did in relation to lending money would have been the same.”

Judge Martin Nolan told the jurors the prosecution’s case was nearing its end. He also told them they would not be required until tomorrow.